Development and support of small and medium-sized business is one of major state task. Despite of that small and medium-sized have several unresolved problems. Article defines problems that restrain development of small and medium-sized business on municipal level. The study of specifics of cooperation between local authorities and small and medium-sized business allowed to make conclusion about low competence of municipal authorities in issues of support of small and medium-sized businesses. Accordingly author offers recommendations of optimal cooperation between municipal authority and business.
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